Bakkafrost Group produced a profit, according to its 1Q 2013 report, despite good and bad news from spot price increases.The price increases, according to the report, benefited the company’s farming segment, with operating earnings before interest and taxes (EBIT) at DKK 124.5 million (USD 21.6 million, EUR 16.7 million). The increases were not so good news for the company’s value-added product (VAP) division, which showed a 1Q operating loss of DKK -23.2 million (USD -4 million, EUR -3.1 million), which the company also blamed on “contracts prices that do not reflect the current market situation.”
But the group overall had a total operating EBIT of DKK 105 million (USD 18.2 million, EUR 14.1 million), and a profit for the quarter of DKK 67.5 million (USD 11.7 million, EUR 9.1 million), and the report indicated a predicted high demand in the salmon market for the rest of the year.
"We are satisfied with the result for Q1 2013,” said CEO Regin Jacobsen. “Our farming operation delivers a continuing strong performance, while we, as we could expect with steep increasing spot prices, have losses in the VAP segment. The market for salmon has been strong in the first months of 2013 and the outlook for 2013 is good, as the increase in the supply is estimated to be limited."
